Hugh Bray

Well, I have to tell you... for all of those folks that have been waiting to see what Dartmouth Crossing has in store for you in the months ahead, consider these pieces of great news!

Costco Canada is now building their newest Atlantic Canada store at Dartmouth Crossing, located at the corner of McClure Close and Countryview Drive. The concrete foundations have been poured and the structural steel of the actual warehouse building is taking shape very rapidly. Great news for all you "Dartmouthians" and "Haligonians" who are so very fond of the Costco brand and the great wholesale shopping experience it offers one. I personally think their meat department is amongst the best in the city!

Moxie's Classic Grill, an established upscale eatery chain, is underway. Construction has started and advances well - check out this link to see where the new store will be located! (right next to the "now under contruction" CIBC Banking Centre on Countryview Drive).

Needless to say this bodes well for its influence on Dartmouth and area real estate as well. Retail is growing up in Dartmouth since the arrival of Dartmouth Crossing; providing home owners and residents with so many new options versus the lengthy drive to Bayers Lake and other established shopping areas. Stay in touch for more news on coming developments!

September 17, 2008

2008 HALIFAX REGION HOME SALES CONTINUE TO SLOW
Halifax Dartmouth MLS® home sales continue to slowly slide as Classic Realty has forecasted since late 2007. Our market is down 8.3% this year versus the same months in 2007 (the best MLS® year on record). While our local market is still "healthy" compared to many other areas of the country, we do have an obligation to report to you on the market conditions that are going to affect your success as a Buyer or Seller in the weeks and months ahead.

KEY BUYER'S MARKET TRENDS TO WATCH
We continue to see a number of specific signals that are shifting the Buy - Sell advantage from the Seller toward the Buyer. We are definitely in a "Buyer's Market":

• We witness the continuing slide in the number of homes sold YTD vs. 2007 (432 units or 7.7% less than last year). Only July 2008 has outperformed any month of 2007 so far.
• Halifax Dartmouth home sales dropped 11.9% in August compared to those of one year ago.
• There were larger MLS® home listing inventories at the end of each month than last year; indicating more choice for Buyers and more competition for Sellers.
• An increase in the number of MLS® sales and new construction in excess of $250,000 has helped drive up total MLS® price averages. 1,612 units have sold YTD, compared to 1,415 in the same period of 2007, a growth of 12.2%, while prices stayed flat.
• Homes under $250,000 are down more than 600 units this year and show flat growth in average sale price vs. 2007. For 3,575 homes sold YTD, we see an average price increase of only $2,867 compared to the 4,204 homes sold in 2007. It is importnat to understand that inn some districts and price ranges Sale Prices are dropping!
• When combined the sub $250K and above $250K markets actually show a decrease in units and the erasing of any average price gains made last year.

WHAT ARE THE IMPLICATIONS FOR BUYERS & SELLERS?

• Be aware of market conditions - gas is going up, money markets are in turmoil and the cost of living is up; understand that the excessive "Bad News" reporting by the US media is not really helping Canadians to understand their much healthier housing markets.
• While the USA market is in bad shape, our Canadian market is fundamentally sound and those who understand it and are prepared will prosper.
• Buyers may perceive that there is a shortage of "affordable housing" in some price ranges; notably lower dollar brackets and starter homes.
• Renting may grow in the face of this trend and with the end of "zero money down" mortgages coming on October 15th the number of "first time" buyers may also decrease.
• It may be wise for Buyers to consider a "Buy & Hold" strategy versus the "Fix & Flip" approach common the last five years. High speculative profits and rapid gains are going to dry up; so be prudent!
• · Buyers should start buying below the "top" of their pre-approved price ranges and avoid "eating hamburgers" because they have to spend the "steak money" to fill the gas tank.
• Opportunities will grow for Investors, particularly longer term "Buy & Hold" and income options.
• Yearly double digit price increases are no longer a reality for the Seller. When one has to down-size or to move across the country they must be more aware of competition in their neighbourhood and price range; then price their home to "sell aggressively and sell first".
• Home value is only determined by what motivated Buyers are prepared to spend at any moment in time in a particular market for a particular home. Understand this and accept this, then plan accordingly.
• Good news - the Bank of Canada prime rate remained unchanged this month, ensuring the continued availability of affordable mortgage money for qualified home buyers.

HOW DO I SET MY HOME SALE PRICE? BE PREPARED!

One has to be very well prepared in order to generate a home sale profit. That's right we said profit - a reasonable, honest profit! If you have owned your home for more than a two or three years you can still realize an "honest profit" based on of the growth of your home's market equity and any improvements that you have made. Clearly one has to manage their expectations in order to maximize the return they receive.

They must avoid confusing a "reasonable profit" with the expectation that the double digit price gains of recent years will continue. These kinds of gain may not happen again for a long while and certainly not in the current market cycle. Grounded, realistic Vendors who work with knowledgeable, well-trained and well-prepared REALTORS® will however fare very well.

WHAT DOES THIS ALL MEAN TO ME?

Our regional housing market should continue to perform well. However motivated Sellers and Buyers must heed the market indicators in order to have success. Successful, profitable home sales will occur for those who respect these changes and choose to work with a good, professional REALTOR®. Please remember:

Only three things sell a home - Good Preparation, the Right Price and Good Marketing.

• Every neighbourhood and price bracket has competition - be aware of your competition and be ready, then price aggressively to sell ahead of them. The Seller that sells first amongst "equal competitors" is more likely to extract the highest value! More time on the market means eventual price reductions and fewer net dollars in your pocket!
• Set your expectations realistically and then get to work on a positive selling strategy with your REALTOR®. Remember that properly setting your home's "For Sale" price will be your key success factor for an efficient sale and healthy profit.
• REALTORS® are trained experts and poised to assist. They understand the trends, know how to manage changing market conditions and are ready to serve!
• Call your REALTOR® today to help you prepare your property for sale and to generate the maximum return on investment.

As we slip into the glorious sunny days of Indian Summer (most folks will tell you this is our finest season here on the East Coast) it is perhaps a good time to quickly reflect on our Region's MLS^® residential sales over the last two months.

In spite of all the doom and gloom, in the international money markets, stock exchanges and housing markets, housing in our region continued to perform reasonably well.

Consider that 2007 was the Mother of all MLS Sales Years and that sooner or later, a correction was bound to start. This has definitely been the case, with a tangible decrease in sales 'year to date' versus last year. Using NSAR sales statistics for the months of July and August we see a continuation of the gradual, but steady decreases in YTD sales volume. July however, as a single month, like April of this year as well, did outperform the record performances of the same months last year in our district. Yes folks, the Real Estate business was "busy" in Halifax Dartmouth!

July saw total of 785 properties sold, an increase of 7.1% over last year's 729. August slipped below last August's sales however with 603 sold properties compared to a record 682 in 2007. Still, a very solid performance for what is typically the slowest month in the summer.

Year to date at the end of August there have been 5,220 completed residential sales in our region compared to 5,648 last year, a drop of 428 properties or almost 8% so far in this campaign. Hardly doom and gloom, compared to many parts of the country, but "things they are a changing".

Market conditions are very different from 2007 as are the realities of buying and selling for consumers and REALTORS^® alike. Stay tuned for more market analysis and helpful suggestions in the days ahead! Topics to include "Pricing to Sell", "Market Inventory" and related themes. Have a great day!

The Brokers, agents and staff of Century 21 Classic are pleased to announce the second annual Century 21 Classic Realty Ltd. Easter Seals Charity Auction to be held this year at "The Rodeo Lounge and Restaurant" in Burnside on October 15th.

Last year's event raised over $17,000 for this important charity and this year we aim to pass this bench mark with the help of our friends, customers and suppliers. Mark this date in your calendar and join us for an evening of fun and auction action for the Abilities Foundation and Easter Seals. Everyone is welcome!

Date: Wednesday, October 15th

Place: Rodeo Lounge and Restaurant, October 15th, 6:00 PM til closing.

Call 902-463-5885 for information!

REALTORS^® CARE!